Kospi Confident With the Global Economy
Kospi rose as widespread expectations that the central bank will be able to maintain the momentum of economic growth in the world. ECB President Mario Draghi overnight Suggests possibility of further monetary easing by-prop up the euro-zone economy.
ECB’s Draghi also pointed out the government bond purchase program may be one of the policies that can be pursued by the central bank. Increased activity of mergers and acquisitions in the US also gave a positive sentiment.
Oil refinery services company Halliburton agreed to buy competitors Baker Hughes. Actavis will buy Botox manufacturer Allergen worth $ 219 per share.
The return of the recession in Japan also opens the possibility of further monetary stimulus from the Bank of Japan even though the central bank has just increased the number of stimulus administration.
Investors also believe the Bank of Korea will continue the cycle of monetary easing by the persistence of the threat of economic slowdown in South Korea. South Korean government has pointed out the need for a stimulus to maintain the momentum of economic growth in Asia’s biggest 4. Kospi futures rose 0.56% and is now trading at 250.65.
Technically, the index on the trading session today, Tuesday (18/11) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 253.50 and 255.00. If it fails at 251.30, then the next index is expected to tend to retest the support level of 250.00 and continued until the possibilities are in the 248.10 area.
Draghi State Momentum Slows Growth, Euro Weakens
After last week managed to record the first weekly gain in the past four weeks, the euro fell back on Monday after European Central Bank President, Mario Draghi, in front of the European Parliament said the euro zone’s economic growth has slowed down during the summer, but he stressed the act further to stimulate perekonomina if needed. Draghi also said all members of the council is committed to using un-conventional instruments if needed.
Draghi stated that despite the euro zone economy unexpectedly grew above expectations in the third quarter that made the euro strengthened last week.
Eurostat reported the euro zone economy grew by 0.2% in the third quarter from the previous quarter, better than economists’ estimates of 0.1%, with a corresponding German economic growth expectations of 0.1% and France’s economic growth by 0.3% above expectations of 0.1%.
Germany and France are the two largest economies in the region. However the high level of unemployment and low inflation remains a concern, the economic health of the bloc of 18 countries.
Technically, the trading session today, Tuesday (18/11), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.2400 and 1.2350 maximum. Meanwhile, if the Euro is able to break and hold above 1.2467, then the other alternative scenario that Euro chance to test resistance in 1.2500 and 1.2550 area.
Gold Fall Back After US Retail Data
Post of the US retail data which rose in the last month and still with the greenback, trading gold declined. Last Friday.
On the Comex trading, gold for December delivery fell 0.83% to $ 1,152.20 per ounce. Gold futures on the support level of $ 1.146.10 and 1.162.30 resistance level at high levels. Silver for December delivery fell 1:45% to as low as $ 15.3412 per ounce.
From the data reported the Commerce Department showed sales in the US rose in October, retail sales rose 0.3% on a seasonal basis in the last month, bouncing back from the first drop in eight months.
Projecting the market by 0.2%, minus the auto sector which rose 0.3%.
Technically, gold in today’s trading session on Tuesday (18/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1180.10 and re-test the maximum level of 1175.50. However, if the price of gold is able to break and hold above 1184.30, the estimated price of gold could potentially test the 1187.10 and 1190.90 resistance.
